source: businesstoday.in

On Tuesday several guidelines were released by the Union Minister Ravi Shankar Prasad and the new electronic manufacturing schemes were unveiled. These guidelines and schemes aim to strengthen the domestic manufacturing of five global and Indian mobile phone makers each.


  • Production-Linked Incentive Scheme (PLI),
  • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
  • Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme

These schemes which are notified by the Ministry of Electronics and IT(MietY) on April 1, have a total outlay amount of Rs 50,000 crore.

The PLI Scheme is expected to extend an incentive of 4% to 6% on incremental sales, over base year, of goods manufactured in India and also covered under the target segments, to the companies which are eligible. This shall be for a period of five years subsequent to the base year.

NITI AAYOG CEO Amitabh Kant said that after many years when we will look back to this day then it will be a path-breaking day because, under the Aatma Nirbhar Bharat concept of the Prime Minister, their attempt is to build some champion sectors which will drive India’s growth and create jobs.
He said he felt fortunate to work with the Ministry of Electronics and IT under the leadership of the Minister (Prasad) and wished to compliment his leadership.
He added that the Minister was very clear in his perspective and everyone in his team worked with dedication to achieve this.

This announcement was also welcomed by the Manufacturers Association for Information Technology (MAIT) as this will boost local handset production.
They urged the government to extend the PLI scheme to other electronics.
Nitin Kunkolienker, the president of MAIT, said that the mobile manufacturing industry was very positive about the move. They believe this scheme will help to meet the targets under NPE 2019.
He said that this will lead to companies moving their supply chains to India. This move will not only spur manufacturing but will also make India export-led global manufacturing hub for mobile phones, he added.

As per the apex body of IT manufacturers, the interruption in the global supply chain due to the pandemic can be turned into an opportunity for India to increase export-led manufacturing.
They believed that broadening the scope of PLI to all other major sectors of electronics such as Consumer electronics, ICT, CPE products, Computers, Medical Electronics, etc. will be a game-changer.

A financial incentive of 25% on capital expenditure shall be provided under SPECS for the following identified list of electronic goods :
electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, specialized sub-assemblies, and capital goods for manufacture of aforesaid goods.

Support for the creation of world-class infrastructure along with common facilities and amenities shall also be provided by the EMC 2.0. This infrastructure shall include Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains.
IFCI, a public-sector NBFC has made Live respective portals to receive applications for the three schemes.

It is expected that the scheme would raise the production of mobile phones and their parts to around Rs.10,00,000 crore by 2025.
This will generate around 5 lakh direct and 15 lakh indirect jobs, the government said.



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